Business Credit Cards: 5 Proven Tips That Get You a High Limit and Help You Optimize Card Usage - S'witty Kiwi (2024)

Want to know how you can use your business credit card to enhance your enterprise, right? If yeah, look no further. From boosting your company’s operations to increasing its purchasing strength, you can do a lot of things with a business credit card.

In particular, you can easily achieve your short and long-term goals with a business credit card. Sounds cool, isn’t it? You bet it is.

Once you understand how business credit cards work, their pros and cons—among other things—you can figure out how a business credit card can enhance your business’s day-to-day operations. And that is what this article is about. Read until the end to unpack everything you need to know about business credit cards.

Ready to learn more?

Read on!

To know what you can do with business credit cards:

1. Know What Business Credit Cards Are
2. Understand How to Qualify for Business Credit Cards
3. Learn How to Apply for Business Credit Cards
4. Master What to Do With Business Credit Cards
   • Build Business Credit
   • Have a Cash Reserve
   • Transfer Balances from Higher-Interest Credit
   • Earn Perks and Rewards
   • Track Employee Expenses
5. Know How to Use Business Credit Card Data When Filing Taxes

To know what you can do with business credit cards, understand what they are and how they work.

Thanks to business credit cards, you can easily build your company’s credit profile in order to make funds available when necessary.

What’s more? You enjoy a higher spending limit and reward programs with a business credit card than personal credit cards. This is because you make higher business-related purchases than you do for personal needs.

To grasp what you can accomplish with business credit cards, learn the qualification requirements, which are mainly the state of your personal and business credit scores. With your credit history, you convince the business credit card issuer you’re creditworthy and that you can use the business credit card responsibly.

That said, the higher your personal and business credit scores, the higher your chances of receiving an approval for a business credit card application.

To understand what you can do with business credit cards, familiarize yourself with the application process.

To get started, fill out the application form online and attend promptly to any additional information the card issuer may require so you can verify your application.

Usually, card issuers require additional information through a follow-up form, a phone call, or an email. Business credit card applications typically require similar personal information as personal credit card applications.

In addition to your personal information, a business credit card application demands more detail about your business, including enterprise’s name, industry, EIN (if applicable), and revenue.

Thanks to business credit cards and the higher access to funds they bring, you can easily build your business credit.

One cool thing is that most business credit card issuers report your activities on the card to credit bureaus, a faster way of building your venture’s credit—if you use the card responsibly by making on-time payments and lowering your credit utilization ratio, though.

Also, with a business credit card you can opt for a revolving line of credit with a higher credit limit in order to meet emergency business-related expenses and increase your company’s purchasing power.

If having a cash reserve for your business sounds nice to you, consider getting a business credit card. When it comes to covering unplanned costs and expenses, storing up cash reserves for your business goes a long way.

More importantly, a cash reserve keeps you from credit card debt or need for additional loans. Be careful not to make your business vulnerable to cash advances by planning ahead for emergencies.

To make proper use of your business credit cards, transfer balances from other credit products (like personal credit cards, personal line of credit etc.,) to your business credit card so you can relieve your personal debt.

Know that the interest rates on the business credit cards are usually low. Hence, when you transfer balances from other high interest credit products, you reduce the interest payable eventually. In particular, transferring your balances also provides more time to pay up.

To maximize the use of your business credit cards, familiarize yourself with the benefits and rewards (points, miles, and cash back) the business credit card offer. With business credit card rewards, you lower your business’s expenses (traveling, inventory and software expenses, for example).

To qualify for points, miles, or cash back reward, choose the right business credit card that offers the benefits you desire. Depending on the type of business credit card your apply for and the card’s issue, you earn rewards each time you make purchases with the card.

Clear expenses such as gas, meals or office supplies with your business credit card points reward. You earn a cash back each time you make a major purchase with your business credit card— it works such that you receive a few percent of the amount you spent.

To take advantage of business credit cards, make it a consistent practice to use your business credit card data when filing taxes.

Don’t forget that you pay tax each time you use your business credit card to make any purchase, including interest expenses, balance transfer charges, cash advance fees and credit card processing fees. So account for all transaction taxes while filing your taxes in order to reduce the amount payable.

To know what you can do with business credit cards, understand what business credit cards are and how to qualify for them.

Learn how to apply for business credit cards and the specific ways of using them like building business credit, having cash reserves, transferring balances in high interest credit products, getting rewards and track employee expenses.

Importantly, familiarize yourself with how to use business credit card data when filing for taxes.